Core Viewpoint - Marvell Technology is positioned for significant growth in the AI semiconductor market, with expectations for improved stock performance in 2026 due to strong revenue growth and a solid customer base [1][3]. Financial Performance - Marvell reported a 37% year-over-year increase in revenue to $2.1 billion for fiscal Q3 2026, with non-GAAP earnings rising by nearly 77% to $0.76 per share [5]. - The data center business was the largest growth driver, achieving a 38% year-over-year revenue increase and contributing nearly 75% to the company's total revenue [7]. Growth Drivers - Marvell anticipates sustained growth in its data center business, supported by new customer programs and high-volume custom designs expected to contribute significantly from fiscal 2028 [8]. - The company has secured design wins for its custom AI chips in over 20 sockets, with more than 50 opportunities for additional design wins across 10 customers [9]. Strategic Acquisitions - Marvell's acquisition of Celestial AI for $3.25 billion is expected to enhance its AI capabilities, with anticipated contributions to revenue starting in the second half of fiscal 2028, projected to reach an annualized run rate of $500 million by Q4 fiscal 2028 [10][12]. - Celestial AI's photonic fabric technology is noted for its efficiency and effectiveness in AI data center applications, potentially doubling its revenue contribution by Q4 fiscal 2029 [11][12]. Valuation and Market Outlook - Marvell's stock trades at an attractive valuation of 35 times earnings, with a recent 8% increase following its quarterly report indicating growing investor interest [13]. - Analysts forecast a 25% increase in earnings for fiscal 2027, with a substantial year-over-year increase of 32% expected in the current quarter [14]. - Projected earnings for fiscal 2026 are $2.84 per share, with potential growth to $3.70 per share in the following year, suggesting a target stock price of $126, representing a 31% increase from current levels [15].